Nestlé has confirmed it is in talks about a possible takeover of Chinese confectionery company Hsu Fu Chi.The world’s largest food maker said yesterday (4 July) that it was “engaged in preliminary confidential discussions” with the Chinese firm. Nestlé declined to comment further. In a notice to the Singapore Stock Exchange, Hsu Fu Chi had said yesterday (4 July) that it was in “preliminary discussions” in relation to a “possible transaction relating to the company,... ...Read more »

Australia’s largest cafe group, The Coffee Club, will enter the emerging Chinese coffee drinking market this month, opening a cafe in the Yuexiu District in Guangzhou, with a major franchise license sold to the Guangzhou Golden Swan Enterprise Co. John Lazarou, Director of The Coffee Club, said now is the perfect time for the business to enter China, with a strong coffee culture growing in the country despite most Chinese traditionally drinking tea. “With over 1.3 billion people, a growing middle... ...Read more »

Unilever CEO Paul Polman last week outlined the manufacturer’s strategic shift towards emerging markets to take advantage of their rapidly-growing populations. Speaking at the Cannes advertising festival, Polman said that one of the major drivers of change is the shift of economic power to the east and the south. He asked if the current marketing agency model is the right one in “helping brand owners anticipate the needs of the next billion consumers in the fast growing markets of the... ...Read more »

Brazil has become the top-ranked developing market for retail expansion, according to consultants at A.T. Kearney.The firm said today (6 June) that Brazil jumped from fifth last year on its Global Retail Development Index (GRDI). Brazil’s rise came as India and China slipped in the list. The GDRI ranking mirrors the “dramatic changes” that have taken place in global markets, and the varying impacts they have had on different emerging economies, said A.T. Kearney. It found that South... ...Read more »

Nestlé has announced plans to accelerate its investments in India with the construction of new facilities. The firm said the investment will “re-emphasise its confidence in the country’s growth potential”. Nestle has spent over CHF15m (US$15.1m) in India over the last three years. The Swiss food giant’s current plans foresee a further investment acceleration in “2011 and beyond”, it added. Besides the expansion of its existing sites in Moga, Samalkha, Nanjangud,... ...Read more »

US food and drinks giant PepsiCo said its latest investment in Vietnam will take its planned expenditure in the country to US$400 million (A$445.8 million) between 2008 and 2013. PepsiCo yesterday (16 August) committed US$250 million (A$278.6 million) to the country over the next three years in a bid to increase its manufacturing capacity, introduce new products and “strengthen” its existing brands. Speaking at a gathering in Ho Chi Minh City, Saad Abdul-Latif, CEO of PepsiCo Asia, Middle... ...Read more »

US baby food group Mead Johnson said today that “strong contributions” from emerging markets boosted its first-quarter profits.The company booked net earnings of US$127.5m for the three months to the end of March – compared to $106.6m a year earlier. Profits climbed due to lower financing costs and higher sales. Net sales rose 10% to $763.5m from a mix of price increases, a benefit from foreign exchange and improved volumes. CEO Stephen Golsby said Mead Johnson’s China business... ...Read more »

Kellogg said today (12 November) that it has seen the pace of its net sales growth moderate over the past year, with expansion held back by limited opportunities in high-growth, emerging markets. Speaking at the group’s investor day, Kellogg CEO David Mackay said that the group had seen slower top-line growth this year than in the previous four years due to the cyclical nature of the market, which has seen the cereal giant pushed through fewer price increases. The company expects sales growth... ...Read more »

Once touted as a unique combination of high growth markets, the “BRIC” nations of Brazil, Russia, India and China have enjoyed varying fortunes during the great economic downturn of 2009. Many global food and beverage manufacturers have placed their faith in these markets in the hope they will compensate for the limited growth in developed markets and have every reason to remain confident in their potential, according to a new report. Projections after the first half of the year from... ...Read more »

The Coca-Cola Company overnight reported that they had again exceeded growth targets, with unit case volume growth of 4 per cent in the fourth quarter and 5 per cent for the full year propelling them to a yearly profit of US$5.8 billion. The profit was, however, down 3 per cent on last year’s figures due to the impact of one-time charges. Sparkling beverages increased unit case volume 2 percent in both the quarter and full year, the Company noted. While stalwarts Coca-Cola, Fanta and Sprite... ...Read more »